EarlyAmericanCeramics.com: A Red Earthenware Inkwell: A Comparison of the 2004 and 2015 Redware and Stoneware Markets Based on Auction Results

Saturday, March 14, 2015

A Red Earthenware Inkwell: A Comparison of the 2004 and 2015 Redware and Stoneware Markets Based on Auction Results

Report No. 1

There's a lot to be said about the financial stability in certain fields today and how the success of those industries affect the antique industry. In a sense, it can begin with corporate America and from there, it is a trickle down affect felt at the small business level. Simply put, if people are making money they are typically spending money. Antiques not only provide a certain amount of charm and sophistication to a home, but they are also an investment. When the housing market and the credit card industry plummeted in 2009 - businesses all-over the country felt the change. Some even suffocated because of it. The housing market's bubble had burst. Credit unions, banks and even car dealerships felt the same outcome. A number of bad home loans that may have made sense when the housing market was at its peak went into default causing a financial mess for everyone and every business involved. This caused a national epidemic with foreclosures. Some pensions were reduced - and 401(k)'s tied to the strength of Wall Street dwindled. The stock market was largely affected. Health care and health insurance were affected. Bernie Madoff was even arrested for a large ponzi scheme during this period. Coincidentally, oil prices went up. It wasn't only America, either, the world-over felt this financial change.

According to a recent article written by Kiran Dhillon for Forbes, "At the peak (of the housing market) before the crash, the median sale price for a home in the U.S. was $200,000. By the time the market reached bottom (February 2009), prices had dropped 29% to $140,000. While today's national median sale price has rebounded to $185,000, it's still about 7.5% lower than the pre-crash high...But, there is good news, buyers who purchased a home at the peak of the housing market should reach a break-even point on their investment by 2016."

The antique industry was affected largely by the housing market crash. There were some people, who stopped buying in fear of what may happen next - and many antique dealers, auctioneers and related fields suffered because of it. An object may have sold for $5,000 in 2005, but the same object in 2009, may have only sold for $1,000. The unexpected market crash really affected some dealer's inventory. It ultimately affected sales. It affected auctioneers because collectors and dealers weren't spending as much - and as a result, consignors were skeptical of the value that their collections may hold - so, rather than selling they chose to hold onto them. The entire industry was affected. I'm sure for some, it was a scary time.

It is now six years later - and the antique industry has improved a lot since those days. Auction sales are up and people are spending money at the shows. It wasn't necessarily the high-end items that were affected the most because the best-of-the-best has always done well - it was everything else antique related that was hugely affected. The industry has come a long way since February of 2009, but there are still some areas of the industry that haven't really recovered. However, antique American-made stoneware is currently at an all time high today with sale records continuing to climb the ladder to higher-and-higher levels. The firm, Crocker Farm, Inc. in Sparks, Maryland has achieved numerous record setting prices in recent years for desired rare products from specific potter's businesses, to regional records, to specialty sale records and even an all-time record for an individual piece of American-made stoneware, which sold for a hammer price of $350,000 ($402,500 after premiums) in July of 2014. Crocker Farm is a trend setter in the world of American pottery; the fact they have consistently sold pieces for over $50,000 to $100,000 since 2009 is indicative to me of today's market for certain objects. There are also some aspects of the American-made pottery market that are still down; however, as a whole, the market is strong.

I thought the inkwell made in Bristol County, Massachusetts that I wrote about in a previous report this week would make for an interesting comparison of a before and after 2009 market crash. The inkwell had previously sold for $3,800 (hammer price without premiums) as part of the Paulette and Hilary Nolan Collection in 2004 at Northeast Auctions Summer Americana sale in Manchester, New Hampshire. I think some would agree, that 2004, as a collective group, was the high-point for New England-made redware, so far.

The inkwell sold for $1,600 (hammer price without premiums) today at Crocker Farm, which is 138% less than what it sold for in 2004. Do I think this is indicative of the New England redware market today? Absolutely not; however, it does show the value this inkwell once held when it was brand-new to the market in 2004 surrounded by a large selection of very-important Bristol County, Massachusetts-made redware, which was also fresh to the market, as part of the overly important, Paulette and Hilary Nolan Collection. There's obviously a number of factors that can account for why an object achieves a certain price (which includes a state sales tax, an exempt buyer/dealer from sales tax and the auctioneer's buyer's premium) - and I think that a number of factors can be taken into consideration why this piece achieved well-over $4,000 (with premiums) in 2004.

Here is a link to the auction listing.